Tigo ownership dispute settled; IPO process will be resumed

31 Aug 2018

Millicom Tanzania (Tigo), the local mobile unit of Millicom International Cellular (MIC), is aiming to hold an initial public offering (IPO) soon, after a court ruled in favour of the company in an ownership dispute, Bloomberg quotes the firm’s Managing Director Simon Karikari as saying. Last month Tanzania’s Appeal Court dismissed a case by Golden Globe International Services and Quality Group of Tanzania that it was the rightful owner of 99% of Tigo’s shares. ‘Tigo Tanzania is committed to meeting the IPO requirements set by the government,’ Karikari said in an emailed response to questions, without giving details.

In June 2016 an amendment to the Electronic and Postal Communications Act of 2010 made it a legal requirement for the country’s telecoms operators to float 25% of their shares on the Dar es Salaam Stock Exchange (DSE), but Tigo’s listing process was delayed last year pending the resolution of the shareholder dispute. Mobile market leader Vodacom Tanzania was the first – and remains the only – operator to meet the requirements, having concluded its IPO last year.

Tanzania, Millicom International Cellular (MIC), Millicom Tanzania (Tigo)